ON THE INSTRUCTIONS OF R E A L E S TAT E I N V E S T M ENTS LONG LET GOVERNMENT OFFICE INVESTMENT OPPORTUNITY WITH GUARANTEED RENTAL UPLIFTS ANGOULEME WAY BURY BL9 0EL Opportunity to acquire an office investment let to Bury Metropolitan Borough Council (MBC) until 1st April 2036. Lease benefits from fixed rental increases in 2021, 2026 and 2031 giving guaranteed rental performance. Occupied by Six Town Housing which is an Arms Length Management Organisation (ALMO) set up in 2005 to manage the housing stock owned by Bury MBC ANGOULEME WAY BURY BL9 0EL 2 INVESTMENT SUMMARY • Office investment situated in Bury town centre fronting the inner ring road within walking distance of amenities. • High quality office developed in 2011 providing approximately 16,440 sq ft together with 20 car parking spaces, forming part of Townside. • Townside is a £100m mixed use development creating a new civic quarter. • Adjacent occupiers include Bury MBC, Bury Primary Care Trust and Premier Inn. • Let to Bury MBC an undoubted tenant until April 2036 (over 17.75 years unexpired) and sublet to Six Town Housing on similar terms who occupy the entire building. • There is a tenant break option on the 24th March 2031 (12.75 years). • Six Town Housing Limited (via an ALMO) have since 2005 managed the housing stock of Bury MBC (8,000 Properties). • Current rent is £363,413 pa which has fixed uplifts in March 2021 , 2026 and 2031. OFFERS IN EXCESS OF £5,925,000 (FIVE MILLION NINE HUNDRED AND TWENTY FIVE THOUSAND POUNDS) WHICH REFLECTS A NET INITIAL YIELD OF 5.75%, NET OF PURCHASERS COSTS AT 6.62% AND MINIMUM REVERSIONARY YIELDS AS FOLLOWS; MARCH 2021 – 6.35% MARCH 2026 – 7.01% MARCH 2031 – 7.75% 3 ANGOULEME WAY BURY BL9 0EL A56 SAT NAV: FREETOWN Bl9 0EL LOCATION M66 B6213 FERNHILL Bury is one of the 10 metropolitan boroughs that comprise the TESCO Greater Manchester conurbation and is situated 8 miles north of B6222 FAIRFIELD Manchester City centre, 5 miles east of Bolton and 6 miles west ELTON AY W of Rochdale. Whilst historically being associated with the textile L E E P THE ROCK industry the town now offers a variety of commerce and has a W A BURY BOLTON ST S H district population of 185,000 and a working population in excess L A58 R A BURY O C H N D A L E of 600,000 within a 6 mile catchment. E R O BURY ART MUSEUM A D A58 ANGOULEME A58 The town has excellent transport links being located adjacent to BURY BUS & TRAM RETAIL PARK 2 A58 INTERCHANGE PIMHOLE the M66 motorway with junctions 1-3 all being within 3 miles of MILLGATE BURY TOWN HALL M SHOPPING B6219 the town which in turn connects with the junction 18 of the M62 A CENTRE N motorway 4 miles south. The M60 orbital motorway provides C BURY COLLEGE H connections around the north west via the M62 E S T FISHPOOL M56, M61 and M6. E R R ROCHDALE D The Metrolink connects Bury to Manchester City centre and M66 21 BURY 2 M62 mainline railway stations within 20 minutes. The Metrolink also 20 BOLTON provides connections to Manchester Airport , Altrincham, Salford 3 19 21 Quays, Media City and other neighbouring districts. 21 GREAT LEVER 18 WIGAN M61 OLDHAM 19 17 3 20 2 M60 15 21 WALDKEN 22 14 WORKING POPULATION OF 600,000 HARPURHEY WITHIN A 6 MILEM6 CATCHMENT 13 M60 SALFORD ASHTON-UNDER-LYNE 24 12 M602 2 23 ASHTON-IN-MAKERFIELD 3 MANCHESTER TRAFFORD 23 M60 24 3 M57 M62 URMSTON HYDE JUNCTIONS 1-3 OF THE M66 REDDISH 22 8 MOTORWAY WITHIN 3 MILES 11 7 10 6 25 9 BIRCHWOOD SALE 26 5 M6 1 STOCKPORT M60 21 1 3 3a 2 WARRINGTON 3 CHEADLE MANCHESTER CITY CENTRE 4 ALTRINCHAM 5 HAZEL GROVE & MAINLINE RAILWAY STATIONS 8 20 7 20 MINUTES VIA METROLINK M56 ANGOULEME WAY BURY BL9 0EL 4 BURY TOWNSIDE 6 Knowsley Place forms part of the highly successful Townside £100m redevelopment of a 10 acre site in the town centre in 2011/12 which has created a new mixed use civic quarter. The development provides 4 signature buildings ANGOULEME RETAIL PARK totalling over 150,000 sq ft and a 400 space multi BURY COUNCIL BURY COLLEGE storey car park set in a high quality environment. BURY MARKET Q PARKS Other occupiers include the Bury MBC, Bury MILLGATE SHOPPING CENTRE Primary Care Trust and a 115 bed room Premier Inn. BURY METROLINK BURY INTERCHANGE A BURY TOWNFIELD The development fronts the inner ring road, N G O TO M66 JUNCTION 2 U L E M Angouleme Way (A56) opposite the towns bus and E W A Metrolink interchange. The town’s retailing and Y BURY TOWN HALL leisure facilities are all within a short walk of the MAIN RETAIL AREA INCLUDING BURY PCT BURY ART MUSEUM HEALTH CENTRE property. MILLGATE SHOPPING CENTRE, BURY MARKET & THE ROCK BURY TOWN CENTRE 5 ANGOULEME WAY BURY BL9 0EL DESCRIPTION High quality office accommodation arranged over lower ground and five upper floors, together with 20 car parking spaces in the adjacent multi – storey car park. The ground floor fronts Angouleme Way providing a client facing reception and meeting areas from where the main public entrance is accessed. A separate staff entrance is located at lower ground floor. Building specification includes; • Steel frame construction • Full access raised floors with 110mm void • Floor to ceiling heights of 2.7m • Suspended ceilings and carpeted floor coverings • 18 person passenger lift • Gas central heating via permitting floor grills • Comfort cooling to parts • Fully fitted ground floor providing public areas • Male and female w/c to each floor ANGOULEME WAY BURY BL9 0EL 6 ACCOMMODATION The property has been measured in accordance with the RICS Code of Measuring Practice (6th Edition) on a Net Internal Area as set out below. Floor Area (sq ft) Area (sq m) Lower Ground 1,574 146.6 Ground 1,842 171.2 First 3,475 322.9 Second 3,475 322.9 Third 3,475 322.9 Fourth 2,599 241.5 Total 16,440 1,528 TENURE The property is held long leasehold for a term of 250 years less 3 days from 15 January 2008 at a fixed peppercorn. TENANCY DETAILS The property is let to Bury MBC by way of a 25 year FRI lease expiring 1st April 2036. The current rent is £363,413 pa which is subject to guaranteed minimum rental uplifts every 5 years. Reviews are based upon the higher of OMRV and 2% pa compounded uplifts. March 2021 March 2026 April 2031 £401,238 pa £442,998 pa £489,106 pa There is a tenant only break date 24 March 2031 subject to a 8-15 month notice period. The property is under let to Six Town Housing Limited by way of a 25 year FRI lease expiring 24 March 2036. All other terms are similar to the head lease. 7 ANGOULEME WAY BURY BL9 0EL TENANT INFORMATION Bury Metropolitan Borough Council Bury MBC are a local Government department and recognised as an undoubted tenant. Six Town Housing Six Town Housing is an Arms Length Management Organisation (ALMO) which was set up in 2005 to manage the housing stock owned by Bury Council. They currently manage over 8,000 properties within the town for the council. The company look to balance the revenue they obtain from the housing stock against expenditure to run and maintain the portfolio. BURY PCT HEALTH CENTRE The company currently generate in excess of £29,000,000 from the properties. Further information can be found at www.sixtownhousing.org ANGOULEME WAY QPARKS BURY COUNCIL OFFICE 6 KNOWSLEY PLACE PREMIER INN Metrolink Station ANGOULEME WAY BURY BL9 0EL 8 EPC The property has an EPC rating of B42 VAT We are advised that the property is elected for VAT purposes and therefore the sale of the property will attract VAT (it is assumed that the sale will be way of a TOGC). PROPOSAL OFFERS IN EXCESS OF £5,925,000 (FIVE MILLION NINE HUNDRED AND TWENTY FIVE THOUSAND POUNDS) WHICH REFLECTS A NET INITIAL YIELD OF 5.75%, NET OF PURCHASERS COSTS AT 6.62% AND MINIMUM REVERSIONARY YIELDS AS FOLLOWS; MARCH 2021 – 6.35% MARCH 2026 – 7.01% MARCH 2031 – 7.75% FURTHER INFORMATION For further information on the property or to make arrangements to inspect please contact: David Winterbottom Adam Wildig Matt Jones 0161 956 4103 0161 956 4029 0161 956 4105 0161 834 7187 07836 225 552 07739 325 666 07904 629 605 gva.co.uk/14279 [email protected] [email protected] [email protected] GVA Grimley Limited Conditions under which Particulars are issued GVA Grimley Limited for themselves, for any joint agents and for the vendors or lessors of this property whose agents they are, give notice that:1.) The particulars are set out as a general outline only for the guidance of intending purchases or lessors and do not constitute, nor constitute part of, an offer or contract. 2.) All descriptions, dimensions, references to condition and necessary permission for use and occupation, and other details, are given in good faith and are believed to be correct but any intending purchasers or tenants should not rely on them as statements or representations of fact but satisfy themselves by inspection or otherwise as to the correctness of each of them. 3.) No person in the employment of GVA Grimley Limited or any joint agents has any authority to make or give any representation or warranty whatever in relation to this property.